Fortunade Corporation Stock Has a Price of $100 Per Share,a

question 145

Multiple Choice

Fortunade Corporation stock has a price of $100 per share,a dividend of $1.60 per share,and retained earnings of $2.00 per share.The dividend yield on this stock is

• A)2.8 percent.
• B)2.0 percent.
• C)1.6 percent.
• D)0.4 percent.

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Definitions:

Available-For-Sale Securities

Financial assets held by a firm that can be sold in the financial markets, not classified as held-to-maturity or trading securities.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities.

Trading Securities

Financial assets that a firm holds primarily for the purpose of selling them in the short term to profit from price fluctuations.

Adjusting Entries

Entries made at the end of an accounting period to ensure that companies follow the revenue recognition and expense recognition principles.